School Cutbacks Lead July Job Declines

Unemployment is up in the Sacramento region. July's jobless rate of 5.2 percent was up from June's rate of 4.8 percent. Cara Welch with the state Employment Development Department says it's because of seasonal cutbacks in education.

"Generally in July we do see...typically see an increase in the unemployment rate," says Welch. "And that's due to the schools letting out for summer and cutting back on the school staff."

The government sector (including education) lost 13,300 jobs between June and July in the four county region, which includes: Sacramento, Yolo, Placer and El Dorado counties. Those losses were offset by gains in: leisure and hospitality, accommodation and food services and professional and business services.

Welch says July's 5.2 percent unemployment rate is an 11-year low.

"For July in the Sacramento metropolitan statistical area, the last time it was as low as 5.2 percent was in July 2006 when the rate was 4.9 percent," says Welch.

The statewide unemployment rate rose slightly from 4.7 percent in June to 4.8 percent in July. But the state still added 82,600 nonfarm payroll jobs.